15 December 2008

Industry welcomes legal action over ATOL breaches - UPDATED

TUI has welcomed the CAA's determination to seek funds from agents who have illegally sold packages without ATOL protection.

In a statement issued on Friday, the CAA said it will take action against agents who illegally sold accommodation and other travel-related services packaged with flights by failed operators Freedom Flights and Pure Flights (see previous stories).

Dermont Blastland, managing director TUI UK and Ireland, said: "We desperately need an environment for customers so that when they book holidays they can be 100% certain whether they are protected or not.

"We continue to urge the Government to undertake a fundamental review and overhaul of this area of regulation for the benefit of the British public and the industry as a whole."

ABTA said: "We wholeheartedly support the CAA in their action against companies illegally organising package holidays as we agree that any agent who sells a package should have in place proper financial protection."

Chief executive Mark Tanzer said: ââ¬ÅâœWe do however, remain concerned that the lack of transparency makes it difficult for the travel industry and its customers to understand and we urge the government again to review this complex issue.ââ¬~

Meanwhile, the Travel Trust Association said it applauded the CAA for its decisive action in starting legal proceedings against those who "have tried to make a mockery of the ATOL system".

Simon Hargreaves, TTA's managing director, said: "For too long we have seen companies avoid providing proper customer protection.

"We applaud the CAA for taking action against those that they believe have broken the law and we hope this will deter others from trying to devalue the system."

Association of Independent Tour Operators chairman Derek Moore said:  ââ¬ÅâœItââ¬â¢s good to see that the CAA is upholding the integrity of ATOL arrangements, which protect consumers who book flights and flight-inclusive packages. 

ââ¬ÅâœThe CAA is scrutinising individually all bookings made by agents with Freedom Flights and Pure Flights in conjunction with accommodation. 

ââ¬ÅâœThe CAAââ¬â¢s aim is to ensure that the paperwork relating to these bookings is correct.

ââ¬ÅâœBona fide companies such as AITO members should not have to pay out twice because some companies have been operating outside the rules, and itââ¬â¢s good to see that the CAA is tackling the situation robustly and is seeking to set a legal precedent.ââ¬~ 

AITO members offer full financial protection for consumers, many via the ATOL system. 

Moore said: ââ¬ÅâœHowever, the key issue here is one which Government has refused to face thus far. 

ââ¬ÅâœThe Government needs to simplify the travel industry regulations and to ensure that one rule ââ¬' 100% financial protection for consumers ââ¬' is applicable to all. 

ââ¬ÅâœAITO and other industry bodies have been asking Government to do this for the past several years. 

ââ¬ÅâœWe hope that, post the XL collapse in September, when several hundred thousand consumers were affected, the Government feels that the time is, at last, right to do so.ââ¬~

by Bev Fearis

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• At last!
  
  

  Action has been long overdue and is the only hope for ATOL holders to see something approaching a level playing field. It is easy to sell 'holidays' for less if you have none of the costs associated with being a tour operator. We need an answer as soon as possible but I can see this going to appeal no matter who wins, so I won't be holding my breathe!

  By Alan Bowen, Monday, December 15, 2008
• please don't assume they will win!
  
  

  It must be considered that the CAA may not actually win this case. If they don't then they have a huge fund deficit that will have to propped up by ATOL holders! Then the fun begins ...... On the ABTA issue it must be remembered that many of the companies avoiding (?) ATOL protection are members of Abta. A conflict of interest??

  By Matt Cheevers, Monday, December 15, 2008
• ABTA's weasel words
  
  

  Reading Mr Tanzer's statement, his weasel words seem to suggest that ABTA might not wholly disapprove of these ATOL-dodging cowboys. In contrast, TUI and the TTA have made their positions crystal clear. I'm delighted that the CAA are finally taking action.

  By Richard Lyons, Saturday, December 13, 2008
• JUSTICE FOR ATOL HOLDERS
  
  

  Excellent Decision..Now We are all in Fair Play Ground..

  By aslan sag, Friday, December 12, 2008